Service cuts likely in wake of failed sales tax, county officials say

LAS CRUCES, n.m. >> The outcome of this week's special election, while a boon to some projects, is likely to mean eventual cuts to county services, officials said Wednesday.

That's because a proposed sales tax increased failed Tuesday, meaning the county will have to look at current operations to find ways to pay for many of the projects the tax would have covered, officials said.

County Commission Chairwoman Karen Perez said she's pleased that two of the four measures on the ballot passed, a $6 million bond issue for the 911 call dispatch center and an $800,000 bond issue for an animal facility. She said she's "disappointed" the sales tax measure wasn't successful, but had concerns all along that voters wouldn't favor it, thanks to the state of the economy.

The 1/4 of 1 percent sales tax hike -- an extra 25-cent charge on a $100 purchase -- would have paid for expanded 911 center staffing; for Crisis Triage Center operations, a facility to help the mentally ill; and for county ambulance services.

The county has money budgeted in its 2013-14 budget to pay for its share of the 911 center -- which is also funded by a handful of cities -- the Crisis Triage Center and a yearly $1.3 million ambulance contract, county officials said. But county commissioners are dipping into county savings from past years -- at a level of $15.4 million -- to accomplish that and other projects in the cycle that started July 1, said County Finance Director Bill Noland.

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"The election wouldn't have taken care of all of that, but it would have put a dent in it," said Noland of the deficit spending.

The sticking point will be subsequent years, Noland said.

"We have a plan that will work for this year, but it's not going to work for the long-term," he said.

County Commissioner Wayne Hancock, too, said he was disappointed the sales tax didn't pass.

"So, we'll have a new 911 center and only be able to be have a (staffing) capacity of what we currently have," he said.

County officials had said the sales tax would have allowed for 911 call center staffing to grow in upcoming years to meet the demands of a growing population.

Hancock, too, said the county will have to revisit its spending plan in light of the election.

"The county does nothing but services, so it means services will have to be cut somewhere, and reduced by a significant amount of money," he said. "It's pretty ugly."

Exactly where and when the cuts will happen will be decided by the board of county commissioners.

Thanks to a resolution commissioners OK'd earlier this year, they're set to review county finances again in October, much earlier in the budget cycle than usual.

That mid-year review was not tied to the election outcome only -- the county is facing flat revenues and financial uncertainties because of federal health-care reform -- but the sales tax failure will be another aspect, Perez said.

"We fully anticipate a budget resolution mid-year," she said.

The failed sales tax hike also would have resulted in the county taking over the burden of funding the 911 center from five municipalities that now all pay a share.

Some city officials prior to the election, however, said they didn't see the need for the county to take over the tax.

The failure of a $1 million bond for the county-owned fairgrounds west of Las Cruces means needed improvements, such as restrooms and bleachers, will have to wait, county officials said.

Brent Bagwell, president of the Doña Ana County 4-H and FFA Expo, said he's glad other ballot questions passed, because the projects are needed. But needs still exist at the aging facility, he noted.

"We'll just get by with what we've got. We're all volunteers, so we don't really have a lot of time to seek other funding, he said, when asked about the possibility of seeking grants from the Legislature.

Resident Gen Mitchell explained her opposition to the ballot measures: "I know with the economy the way it is and a lot of folks having trouble making it, (now) is not the time for tax increases. If the elected officials cannot find a way to cut costs, why do they expect us to?"

Other residents expressed frustration that measures failed.

Said Cristi Moreno Robles, via Facebook: "Ignorance! These voters have no clue how better facilities would positively impact the community and local economy. What a shame that much smaller cities in our state have better facilities."

Bond costs

Officials previously had estimated that, if each of the three GO bonds passed, the cost to a resident who owned property assessed at $100,000 would be about $4.50 per year for the 20-year life of repaying the bonds.

Given that one of the measures failed, that expected cost will drop by about 60 cents per year, Noland said.

An election canvass is set to start after 9 a.m. today, following a special meeting of the county commission that will take place at the county headquarters, 845 N. Motel Blvd., Las Cruces. The canvass is set to wrap up by next Tuesday. Diana Alba Soular may be reached at 575-541-5443

Final Tuesday Election Results

$6 million general obligation bond-renewal measure to pay for building a new 911 call center.

•For: 3,677 (54.6%)

•Against: 3,057 (45.4%)

$800,000 GO bond-renewal measure to pay for finishing a facility for animals being held as evidence in court cases.

•For:3,669 (53.6%)

•Against: 3,172 (46.4%)

$1 million GO bond-renewal measure to pay for improvements to the Southern New Mexico Fairgrounds.